HomeMy WebLinkAbout1996-09-26 MinutesMINUTES OF A MEETING OF THE FIRE PENSION BOARD
•
A meeting of the Fayetteville Firemen's Pension and Relief Board
was held on Thursday, September 26, 1996, at 11:00 a.m., in room
326 of the City Administration Building, 113 W. Mountain,
Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna, Marion Doss, Pete Reagan, Ron Wood
(arrived late), Howard Boudrey, Darrell Judy, and City
Clerk/Treasurer Traci Paul
CALL TO ORDER
Mayor Hanna called the meeting to order.
MINUTES
Boudrey moved to approve the minutes of the August 29, 1996,
meeting. Doss seconded. The motion passed unanimously.
PENSION LIST
Paul reported that Bill Morris's pension was increased to $65 per
month. In response to a question, Paul reported that Morris did
receive back pay; he received an $80 check for this last month.
• Reagan moved to approve the pension list for October. Boudrey
seconded. The motion passed unanimously.
MERRILL LYNCH INVESTMENT REPORT
Richard Yada, of Merrill Lynch, reported July was a tough month.
The market was down 10%. August made a little recovery. New
Mexico Capital value is at $4,026,000. The income account is
$3,856,000 at the end of August. Keystone was $1,083,000 at the
end of August. Treasury Bills are up 3.48%. New Mexico Capital
is up 3.99%. The income account is down 1.5%. The Keystone is
up 5.79%.
Growth is still outdoing value investing, but value may pick up
going into next year. The Dow Jones is up 11%. Standard &
Poor's 500 is up 7.46%. The stock market is up between 7% and
11%. The bond market and long-term treasury is down 8.4% and
high-grade corporate bonds are down 5.23%. That is where the
income account and New Mexico returns are being affected. The
consumer price index was up 2.28%.
Overall, we continue to stay ahead of the ball game. We are
taking $300,000 out of New Mexico and shifting it to the income
account for the Select 10 program. Keystone has $1,083,000.
Asset allocation is stocks 47.7%; fixed income, 44%; cash, 6.8%;
and other 1.5%.
September 26, 1996
In response to questions from Reagan regarding the Select 10,
Yada reported that the summer series is down a little bit. The
winter series is up. Japan is down in both series, and DOW is up
in both series. Overall, we are up a little bit. We just got in
this week on the fall series. Everything is in place and he
feels it is a good area. It is shown in the income account.
They are included in the stock Asset allocation. In the winter
series, we put $75,000 into DOW, the United Kingdom, and Japan.
In the summer series, we put $75,000 in each one. We dust got
into the fall series and have $75,000 in each one.
Wood arrived.
Yada reviewed the
we needed to have
now is $9,045,000
$148,000.
actuary report.
$173,401; we had
. We have assets
For the current income test,
$386,432. The total liability
of $8,897,000. Unfunded is at
Yada stated that occasionally money needs to go from the income
account to the checking account to pay benefits and money has to
be wired. To do it legally, they want an original form
authorized by the Board and signed by a majority of the Board
members. He will keep them on file. He asked the Board to sign
the forms.
NEW BUSINESS
In response to a question from Reagan, Paul reported she had not
received the insurance turn back money.
ADJOURNMENT
There being no further business, the meeting adjourned at 11:20
a.m.